Financial planning hacks every Indian single parent must know
What's the story
Being a single parent in India isn't just about juggling school runs and office meetings — it's about being the sole captain of your financial ship.
From managing daily expenses to securing your child's dreams, the stakes are always high.
But financial planning doesn't have to feel like climbing Mount Everest. With smart strategies and the right mindset, you can turn challenges into opportunities.
Here's how you can.
Budgeting
Start with a budget
Budgeting is super important for single parents.
First, write down all your income, including your salary and any alimony or child support you receive.
Next, track your monthly expenses to see what you absolutely need to spend on and where you can save some money.
This way, you can manage your finances effectively, and know how much money you can set aside for savings and investments.
Emergency fund
Emergency fund is key
An emergency fund is not just important, it is a must-have for single parents.
You should strive to save a minimum of six months' worth of living expenses in a separate savings account.
This fund serves as a safety net during unexpected situations like medical emergencies or sudden job loss, providing peace of mind that your family's needs can be met without resorting to liquidating investments intended for future goals.
Child's education
Invest in your child's future
Education expenses are through the roof, and if you are a single parent, the sooner you start, the better it is.
Consider investing in schemes like Sukanya Samriddhi Yojana (for girl children) or mutual funds through Systematic Investment Plans (SIPs).
These investments provide not only decent returns over time but also enforce discipline in regularly saving for your child's education fund.
Insurance coverage
Secure your family's future with insurance
Both life and health insurances are super important for single parents when it comes to financial planning.
A term life insurance policy guarantees that if something happens to you, your child will be financially secure.
On the other hand, a good health insurance ensures you don't have to worry about unexpected medical bills eating into your savings.
Please ensure you have enough coverage based on your family's requirements.
Retirement planning
Plan for retirement alongside
While you are busy adulting, don't forget to plan for your retirement.
Making regular contributions to retirement accounts such as Employees Provident Fund (EPF) or establishing an individual retirement account by way of SIPs in mutual funds will ensure your financial stability in the future when you no longer have a steady income from a job.